The price of wine is expected to drop to its lowest levels in five years thanks, in part, to a surplus of California grapes as well as a decreased demand for wine
Let's raise our tumblers and toast to cheaper wine.(CNN) The price of wine is expected to drop to its lowest levels in five years thanks, in part, to a surplus of California grapes.Combined with a decreased demand for wine, drinkers can expect to get better value for every drop they drink this year. The cheaper prices may even last up to three years.Rob McMillan, founder of Silicon Valley Bank's Wine Division and author of the annual State of the Wine Industry report, predicts US wine consumers will enjoy the"best wine retail values in 20 years."There are too many grapesRead MoreVineyards in Northern California began planting thousands of acres of new vines in 2016, and with more efficient harvesting methods, it has led to more bountiful harvests of grapes. A 97,000-gallon red wine leak made its way into a Northern California riverHaving more grapes to make wine sounds good, but if there's not enough demand to support increased production, the surplus grapes go to waste.Jeff Bitter, president of Allied Grape Growers, told CNN that it's possible for surplus grapes to make it to the secondary market, where they're used for brandy or as grape concentrate. But that market doesn't typically provide sustainable returns for growers."The main cause of oversupply today is the culmination of a few years of slowing wine shipment growth, with an ample 2018 wine grape crop as an exclamation point," Bitter said."Until 2015, wine shipments had grown, almost predictively, for two decades. The slowdown in growth has caught the industry by surprise.How Hungary produced the 'world's most expensive wine'"Since it takes up to five years to bring wine to market from the initial planning stages of planting a vineyard, it makes hitting future demand very complicated. In this case, we overshot demand."To bring the market back into balance, California growers will need to cut down on producing acres of vines."With flattening consumer demand for wine, unless vineyard acres are removed, balance will be difficult to find," McMillan told CNN."Balance will first be found in Napa, followed by other premium regions in California. It will take at least 2-3 years for grape pricing to stabilize."Unprecedented value in 2020Wine consumption has dropped for the first time in 25 years, with more Americans turning to liquor and ready-to-drink cocktails, according to industry group IWSR.Americans' wine consumption dropped for the first time in 25 years"The industry should rightly be concerned," McMillan said."We aren't engaging with the millennial consumer, and boomers who have driven wine sales for the last 30 years won't live forever."McMillan believes that the larger millennial population has not yet embraced wine, which is the wine industry's largest growth opportunity. But he thinks that improved value on wine could lead to millennials becoming"more consistent wine buyers.""Today, the wine supply chain is stuffed," McMillan wrote in his report."This oversupply, coupled with eroding consumer demand, can only lead to discounting of finished wine, bulk wine and grapes. US wine consumers will discover unprecedented retail value in 2020 and should buy up."CNN's Jordan Valinsky contributed to this report. Read more: CNN
Yes! Franzia about to be BOGO! Ew California wine Climate Change Everyone's just holding out 'til the hemp-infused runs hit the market! Demand is down because we get all the whine we can stand right here on Twitter. Prolly cause more people turning to cannabis instead I guess it’s time to break out the big glass!
Cause it's Gross. One of the biggest dissapoints of my adult life. You would think wine would taste like yummy grapes. It doesn't... bleck who remembers the huge fires that ravaged wine farms I love how the article doesn’t mention that the wine market is saturated with garbage; many wines are just different brand labels with the same junky sweetened blends in the bottle.
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Finally some good news 🍷🍷 Who needs bloated, jammy, Californian wine when gin exists? 🤷🏽♀️🍸 If it’s quality wine you’re after, disregard this article. Australia had a “wine lake” as well back in early 2000s. It just meant poor quality was in abundance. Good quality? Ya. Don’t expect any discounts.
Chinese not buying since the trade war. On the plus side our sales in Australia have risen. Cheers Trump 🍷 cc Moskvaa Never touched that California stuff since the arsenic issue a few years ago, which appears to be ongoing according to a new lawsuit from last year. I only drink foreign wine which is not as expensive as many think.
Yeah, give me a ton Traces of Bayer’s weed-killing chemical discovered in popular wines and beers Decreased demand for wine? Not in my families homes! KAREN CRAGG? CASEY Koelsch? Beware recovering boozers This is a ruse to get you back on the good stuff then make the prices high again
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Wine is gross Seems like more people in California are switching to pot. Yahoo!!🤪👍 Sweet Who drinks wine in a tumbler ? A decreased demand for wine? What the hell! I thought the vinyards were destroyed in the brush fires. Distill brandy.
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Wine is the cause of vintage crime Unfortunately, in this banana republic, people have had to move on to hard liquor. You say the demand has decreased in Carlifornia. Don't generalize your post 🍷🍷🍷🍷🍷🍷🍷🍷🍷
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From a glacier break to record temperatures, Antarctica had quite the week in climate changeThis week, an iceberg the size of Atlanta broke off a glacier. Researchers discovered a dramatic decline in Antarctic penguin colonies. And Antarctica may have just registered its hottest temperature ever. Did you mention that it's Trump's fault? I didn't catch that in this read, odd........ Constant Negative News No no no.........trumpy said climate change is all bullshit and I believe him because trumpy never lies. Obviously being sarcastic, but I have to add that in otherwise trumpanzees will actually think I'm being serious.